Is there such a thing as riskless investments?

Not all of us are brought up in an affluent family. Most of us were raised with the notion that we should not invest our money unless with those that we trust. Trust can be so uncommon nowadays especially when it comes to our own money management.

Often, people place their money in fixed deposits. After all, its a safe haven for your money. We were taught since young to be friendly with the banks. Then came the 2008 recession. For those of you who are still oblivious, here's what happened.Banks can be a risky place to park your money.Of course not all banks.What happened with Citigroup, ABN Amro and many others can possibly happen again. Know how much of your fixed deposits are insured under the SDIC. For instance only the first $20000 in a single account are insured.Whenever I tell people that risk does exist when putting your money into the bank, I sometimes do get unfavourable responses.

People were asking why this fact is not shared with the public? As a matter of fact, it has been shared with the public.Through its website and also through the various fine prints written, at the bottom of every aplication form the banks have.

I do not intend to stir any public unrest with the banks but I personally think that the public should be well-informed about all these matters.

On the other hand, when we you invest your money with any corporation, do take note of the following:

1)Is there any charges incurred with the transaction?
2)Is there a penalty fee for early withdrawal?
3)Is there a minimum holding period?(a period where you need to keep your money invested)
4)What are the risks involved in the investment?

All in all there are always risks in every investment that you make.Never buy the idea that an investment is less risky just because your friends and family have been making money out of it.Avoid the constant hyped-up advertisements on making dubios amounts of money in a short time. If its too good to be true, then it is too good to be true.

There will always be risk when we invest. What makes the difference is whether you are comfortable with the level of risk that you undertake.After all, as the investment maestro,Warren Buffett once said,"Risk comes from not knowing what you're doing".

Happy investing all.